Income Tax Calculation – Exemption u/s 10 (13A)
Example 9
Exemption u/s 10 (13A)
1. Mr. A, employed with XYZ Ltd. Up to 31.10.2016, received following emoluments :
|
S.No. |
Particulars |
Rupees |
|
1. |
Basic pay p.m. |
13,000 |
|
2. |
Bonus for the year received in July, 2015 |
7,200 |
|
3. |
Club facility (for private use only) Expenditure by employer p.m. |
700 |
|
4. |
House Rent Allowance p.m. |
2,800 |
|
5. |
Employer’s contribution to URPF p.m. (Mr. A also made equal contribution) |
1,000 |
|
W.e.f. 01.11.2015, Mr. A joined PQR Ltd., with following pay package : |
||
|
1. |
Basic pay p.m. |
18,000 |
|
2. |
House Rent Allowance p.m. |
1,600 |
|
3. |
Club Facility (for private use only) Expenditure by employer p.m. |
1,100 |
|
4. |
Use of car for journey between office and residence – Employer’s expenditure p.m. |
600 |
|
5. |
Employer’s contribution to RPF p.m. (Mr. A also made equal contribution) |
2,000 |
|
Other particulars of Mr. A are as under : |
||
|
1. |
Mr. A resides at Amritsar paying a monthly rent of |
3,500 |
|
2. |
Mr. A’s income from other sources |
95,000 |
|
3. |
Mr. A contributed to LIC/PPR/NSC etc. |
20,000 |
|
Compute Mr. A’s taxable income and tax liability for A.Y. 2017-18. |
||
Computation of Tax
|
S.No. |
Particulars |
Rupees |
|
|
1. |
Income from Salary |
|
|
|
|
(a) From XYZ Ltd. |
|
|
|
|
Basic pay (Rs.13,000 x 7) |
91,000 |
|
|
|
Bonus |
7,200 |
|
|
|
Club facility (Rs.700 x 7) |
Rupees |
4,900 |
|
|
H.R.A. (Rs.2,800 x 7) |
19,600 |
|
|
|
Less : Exempt u/s 10(13A) |
15,400 |
4,200 |
|
|
Employer’s Contribution to U.R.P.F. |
|
1,07,300 |
|
|
(b) From PQR Ltd. |
Rupees |
|
|
|
Basic pay (Rs.18,000 x 5) |
90,000 |
|
|
|
H.R.A. (Rs.1,600 x 5) |
8,000 |
|
|
|
Less : Exempt u/s 10(13A) |
8,000 |
|
|
|
Club Facility (Rs.1,100 x 5) |
5,500 |
|
|
|
Facility of Car (not taxable as perquisite) |
15,400 |
|
|
|
Employer’s Contribution to R.P.F. |
95,500 |
|
|
|
Gross Salary |
2,02,800 |
|
|
|
Less: Deduction |
—– |
|
|
|
Net Salary |
2,02,800 |
|
|
2. |
Income from Others Sources |
95,000 |
|
|
|
Gross Total Income |
2,97,800 |
|
|
|
|
|
|
|
|
Less : Deduction u/s 80C |
|
|
|
|
: Contribution to LIC/PPF/NSC |
Rs. 20,000 |
|
|
|
: Contribution to RPF ( Rs.2000 x 5) |
Rs. 10,000 |
30,000 |
|
|
Total Income |
2,67,800 |
|
|
|
Computation of Tax Liability |
|
|
|
|
Tax payable on Rs.2,67,800 |
8,90 |
|
|
|
Less : Rebate u/s 87A |
8,90 |
|
|
|
Net Income-tax payable |
Nil |
|
|
|
Add : Surcharge |
Nil |
|
|
|
Add : EC @ 2% |
— |
|
|
|
Add : S&HEC @ 1% |
— |
|
|
|
Total Tax Payable |
Nil |
|
Source: https://www.incometaxindia.gov.in